US cold spell sends oil prices up

Weather patterns in the US are influencing oil prices

Oil prices are approaching $58 a barrel amid colder weather in the US and increasing speculation that oil cartel Opec might cut output.

US light, sweet crude rose 37 cents to $57.93 in New York, while in London, Brent crude rose 51 cents to $57.23

A cold spell in the US - the world's largest consumer of oil - has sent oil 14% higher since January's 20-month low of $49.40, when temperatures were mild.

Fears over a possible strike in Nigeria have also pushed prices higher.

Strike threat

The country's key unions are threatening to strike, in reaction to increasing violence in Nigeria's petrol producing region.

This could potentially affect supplies from one of the world's leading oil producers.

Geopolitical tensions during last summer, including in Nigeria, were a major factor in sending oil prices sharply higher to reach a record mark of $78 a barrel.

After an initially mild winter, the north-east region of the US has seen temperatures fall dramatically, thereby increasing demand for oil and especially heating fuel.

"The cold weather in the US seems like it will last for a while, and prices have moved up the range" said Ken Hasegawa, from Japanese brokerage firm Himawari.

This sentiment was echoed by John Kilduff, vice president of New York brokerage Fimat, who said oil would likely hover around $60 a barrel rather than falling to $50.